J Powell Confirms $35k Outlook

Crypto Compass 16

Key Takeaways

• Fed’s change in stance following the 25bps rate hike sets the stage for bitcoin.

• The mid-term view is confirmed, but some chop in the short run is anticipated.

• Ethereum is setting up for the next leg up, it will clearly outperform bitcoin.

• What are we missing for the next leg up?

• Why should we care about the Fed? All you need to know is that today’s 25bps is most likely the last one (pause coming), which is exceptionally bullish for bitcoin.

• In other words, J Powell paved the way for $35k. The question remains, what will trigger the leg up and when will it happen?

• We are more likely to hit $35k before we hit $25k with the current state of the system. The risk of a pronounced drop is somewhat low - Bitcoin Risk Signal is below 25.

• The last time the Risk Signal came from the high-risk zone and fluctuated within the elevated-risk zone (0 - 25), the price set up for explosive moves. All we need now is for the Risk Signal to drop to 0.

• Now that the $35k outlook is crystal clear, what are we missing?